The Bank's operations in the sterling money markets have two objectives, stemming from its monetary policy and financial stability responsibilities - to implement the Monetary Policy Committee's decisions in order to meet the inflation target; and to reduce the cost of disruption to the liquidity and payment services supplied by banks to the UK economy. These facilities are set out in part 2 of the 'Red Book':
Part 2 - The Bank's current operations in the sterling money markets (59KB)
When Bank Rate was reduced close to zero in March 2009, the MPC's instrument of monetary policy shifted towards the quantity of money provided rather than the price at which the Bank lends or borrows money. This resulted in a number of changes to the Sterling Monetary Framework (SMF) detailed in the document below:
Market Notice: Sterling Monetary Framework (16KB)
Effective 6 August 2009
The table in the document below summarises the operations currently undertaken by the Bank, including some of the operational parameters:
Summary of current Bank of England's operations in the sterling money markets (147KB)
May 2013
Latest information
Latest SMF Operational Announcements
Market Notice: Sterling Monetary Framework: Extended Collateral Term Repo Faciliity (49KB)
20 November 2012
Market Notice: Sterling Monetary Framework: Extended Collateral Term Repo Facility (65KB)
15 June 2012
Market Notice: Sterling Monetary Framework - National Loan Guarantee Scheme (100KB)
20 March 2012
Market Notice: Information Transparency on Asset-Backed Securities: SME CLOs, CMBS and ABCP securities (172KB)
20 December 2011
Market Notice: Asset Purchase Facility: Gilt Purchases (27KB)
6 October 2011
Market Notice: Introduction of Term DBV and DBV variable haircuts (97KB)
15 June 2011
Market Notice: Revisions to Eligibility Criteria for Sovereign, Central Bank and Supranational Debt taken as Collateral in the Bank of England's Operations (81KB)
11 February 2011
Information for participants
Results of all SMF Operations
Schedule of operations
Documentation
Market Notices
Eligible collateral
Eligibility to participate
Applications to participate
Single Collateral Pool Implementation
